Summary
UBS reduced its price objective on Genuine Parts Company to $135 from $150 while retaining a Neutral rating. The change follows a pronounced market reaction to the company’s fourth-quarter performance and updated guidance for 2026. Over the most recent week the stock fell 15.76%.
Quarterly results and financial metrics
Genuine Parts reported results that fell short of expectations in the fourth quarter. UBS referenced a 17% earnings-per-share shortfall relative to forecasts for the quarter. More granular company disclosures show fourth-quarter EPS of $1.55 versus an anticipated $1.81, which the company characterized as a -14.36% surprise. Quarterly revenue totaled $6.0 billion, just under the $6.06 billion that had been projected.
Over the last twelve months the company generated $24.3 billion in revenue and reported a gross profit margin of 36.83%. The firm’s market capitalization is roughly $16.9 billion.
Drivers of the miss
The company and UBS pointed to weaker revenue growth and persistent inflation in selling, general and administrative expenses as primary pressures on results. Management attributed softness to subdued trends in its North American independent segment and to weakness in its European auto business. Despite these headwinds, analysts continue to model modest top-line expansion, with consensus forecasts projecting about 4% revenue growth for fiscal year 2026.
Strategic shift - separation of businesses
Genuine Parts announced plans to separate its Auto and Industrial segments, a long-expected corporate move. UBS noted that the firm will enter this next phase with a lower earnings base than previously anticipated. The analyst firm expects the shares to trade within their recent range until the company makes visible progress on the separation and underlying operating performance improves.
Investor considerations
One point cited as a stabilizing factor for income-focused shareholders is the company’s long dividend history. Genuine Parts has maintained dividend payments for 56 consecutive years and offers a current yield of 3.28%.
Related developments
Separately, Brightpick announced a strategic partnership with NAPA to deploy more than 100 robots across NAPA distribution centers following a pilot that began in 2025. That partnership and automation rollout reflect evolving supply-chain and distribution dynamics affecting the auto-parts and distribution sectors.
Outlook from UBS and market reaction
UBS lowered its target price and left a Neutral rating in place, signaling a cautious stance until the company demonstrates progress on operational improvement and completion of its planned separation. The firm’s comments, combined with the earnings miss and guidance reduction, have contributed to recent volatility in the stock.
Details of the reported surprises
The fourth-quarter EPS figure of $1.55 missed the $1.81 expectation and produced a -14.36% surprise based on the company’s reported numbers. Quarterly revenue recorded at $6.0 billion fell slightly short of the $6.06 billion projection.
Final note
Investors and industry participants will likely monitor execution of the separation, the trajectory of SG&A inflation, and revenue trends in the North American independent and European auto channels as key indicators of whether the company can restore its prior earnings trajectory.